Streamlined call reports would be expanded to institutions under $5B in banking agencies’ proposal

Expanding the number of banks and savings associations eligible for streamlined reporting – to include those with assets under $5 billion and not engaged in “certain complex” or international activities – was proposed Wednesday by the three federal banking agencies in response to new law enacted this year.

The proposal – issued by the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve and the Office of the Comptroller of the Currency (OCC) – implements a section of the new financial institution regulatory relief legislation enacted this spring, the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA, S. 2155; Section 205). In a joint statement, the agencies said it is designed to reduce regulatory reporting burden on small institutions.

According to the banking regulators, institutions meeting the criteria for the streamlined reporting would be eligible to file “the most streamlined version of the Call Report, the FFIEC 051 Call Report.” The agencies also proposed reducing by 37% the number of existing data items reportable in the call reports for the first and third calendar quarters.

The Federal Reserve and the OCC also said in the release that they are proposing similar reduced reporting for certain uninsured institutions that they supervise with less than $5 billion in total consolidated assets that meet the same criteria.

The definition of a “covered depository institution” under the proposal (that is, not engaged in complex or international activities) generally is defined to mean an institution that has less than $5 billion in total consolidated assets, has no foreign offices, is not required to or has not elected to use Subpart E (Internal Ratings-Based and Advanced Measurement Approaches) of the agencies’ regulatory capital rules to calculate its risk-based capital requirements, and is not a large or highly complex institution for purposes of the FDIC’s assessment regulations.

Also, the proposal states, the principal areas of reduced reporting in the first and third calendar quarters generally would include data items related to categories of risk-weighting of various types of assets and other exposures under the agencies’ regulatory capital rules, fiduciary and related services assets and income, and troubled debt restructurings by loan category.

The proposal is subject to a 60-day comment period (after publication in the Federal Register).

Reduced Reporting for Covered Depository Institutions